Schlagwort-Archive: Customer

The digital on the Business Model Canvas

With the Z1 of Konrad Zuse in the early forties of the last century, the first electronic computer was created. However, the fifth Kondratiev that announced the information technology as a disruptive change in the economy and society started not before the 1970s. The access to the global network is possible anytime, anywhere with mobile devices of all kinds. Together with the gigantic computing power of today’s computers, a big wave to implement well-known concepts is being piled up: the automation of processes, embedded systems in all moving and unmoved objects, data management in the cloud as well as the processing of unimaginably huge amounts of data with Big Data. But what do all these approaches mean for the commercial Canvas ?

Every business can be depicted on the Business Model Canvas. In the following bullet points, the momentum of the digital transformation is considered.

  • Customer
    Already in the course of e-business more than twenty years ago, three customer areas were identified: business, consumer and government. Business describes the commercial enterprises, consumer the private customers and government the state/public institutions. In the beginning ventures should explore the digital reality of their own clientele. How digital are the customer areas? Where and when are the customers active? What do the customers want?
  • Customer relationships
    E-business already elaborated the possible customer relationships at an early stage: namely, all possible combinations of the axes business, consumer and government (i.e. B2B, B2C, B2G, C2B, C2C, C2G, G2B, G2C, and G2G). For most fields famous examples are available, like Amazon (B2C), eBay (C2C). A look at one’s own relationship structures and the degree of its digitization provides initial starting points for the digital transformation. What relationships exist or are possible? How, when and where does the customer wants to get in contact with the provider? What kind of digitization is needed?
  • Channels
    The path through which the participants get in contact with each other is determined by the previous routine. These channels range from personal visits, telephone calls, publications, trade shows, to the Internet. It is an advantage to use all possible channels. Which media is already used? Which channels should be developed?
  • Propositions
    The proposals are split into two groups. 1) Physical products and on-site services as well as 2) digitizable products and remote services. While the second group comprises purely digital propositions, the first group can be extended with digital building blocks, e.g. the remote maintenance of a machine, the 24-hour hotline, online training. The digital opportunities of the propositions are often not clear. Which parts of the assortment can be digitized? Which new digital services fit into the product range?
  • Revenue streams
    In addition to the core business, the accumulated knowledge and contacts provide additional sources of revenue. The digital transformation opens up these information-rich opportunities. Which digital sources of income are available in the field of the propositions? What else can one earn with the existing knowledge? What can you do with the contacts?
  • Activities
    It is always surprising how far or how little the internal possibilities of the IT are used. Thus, value creation continues to take place with traditional, paper-based practices. At the latest when the customers are no longer satisfied with the slow, manual processes and if a closer involvement is desired, nothing else remains but adapting digitally. The affected activities can be derived from the digitizable proposals. Which processes are partly or fully automatable? How does the transformation take place?
  • Resources
    Digital companies have virtual resources, i.e. the IT with its networks. A look at the degree of internal digitization, the already automated processes, the data landscape and the applications quickly shows the need for action. Which processes are already IT-based? What data is available? Which applications have a digital future?
  • Partners
    The participants in the provision of deliverables are the internal and external co-workers. They need new skills in the digital world, such as strong customer focus, lifelong learning, teamwork, change management as well as IT-specific knowledge of computer literacy, data security, data analysis, the Internet, etc. Who are the internal and external partners? Which skill profiles are there or are required? Which skills are missing?
  • Cost structure
    The digital transformation is not free of charge. The savings in expenditure and the increases in sales can not be realized overnight. Looking at Amazon, sales are growing steadily, but profits are not developing in the same way. Before you start with the digital transformation, you need an honest commitment concerning the costs. Where do the expenses arise? How long may the digital transformation take? What is the cost of not digitizing?

Bottom line: The complete Business Model Canvas is affected by the digital transformation. The already achieved digital penetration and readiness of all components determine the expected effort. The first step into the digital future is the conscious decision of all involved people for the necessary efforts. The Business Model Canvas provides the required overview.

PERYOU – Does the customer get what I have or what he wants?

The best offer is the package that supplies the customer with the best result. Afterwards, even the latest knows what this is. The difficulty is the blur of the potential customer needs and the first proposals of the bidder. In the early phases of the contact both parties don’t know each other sufficiently. Therefore it is important to bring the ideas into a form that makes the selection easy for the customer. Does the customer get what one has or what he wants?


For all offerers it is crucial to accept that there is no other objectivity in dealing with the customers but their subjectivity. For this reason the components of the offer should be peryouficated. The following items help.

  • Put off the eyeglasses!
    In the first step it is important to let go the own filters that obstruct the neutral look at the customers. The colored eyeglasses affect not only the contrast between the aspects, but extract certain colors. Your own experience, knowledge and hypothesis manipulate the same way, what you notice with a customer and its topics. Unfortunately you cannot escape completely from your own mental models, since you only understand what you already know. Examples are the terms that are available to you and always need the context, in order to have the chance of being understood: Realization, groundwork, values, measures, effluvium/affluvium, mesmerization as well as any other terms. Therefore, always put off the eyeglasses!
  • Put on the eyeglasses!
    In the second step you focus on understanding the customer. Without your own bias you recognize your counterpart more easily. You observe the nonverbal messages of the body language and empathize. At this moment it is not only a matter of answering but also of experiencing the said, including the corresponding feelings (e.g. faster breath or heart beat in difficult situations). You recognize thereby, where the customers see their benefit. These are at first sight rather functional advantages. However, often these are more emotional advantages. The value of a service appears after you consider the required sacrifices of the customer. This is mostly not the price of the deliverable, but the accompanying expenditures for the realization, like necessary, internal means and employees. Thus a clear picture arises within shortest time. If you take over the acquired hue of the customer, you see from then on the topic with his eyes. Therefore, put on the eyeglasses!
  • Peryouficating
    In the third step it is a matter of translating your offer in such a way to the customer that he can assess it from his own view and hopefully will make the right choice. The appropriate word selection can be derived from the usual formulations. This step we simply call peryoufication (derived from per you = through the counterpart and fication = make). For this purpose you do not describe what you as an offerer know, have and are able to do, but what the customer learns, gets and will be able to do. Let’s look at the following two examples of proposals.
    <1) Our specialists analyze the situation, develop alternative solutions and provide professional business models. We master the newest methods, know all legal conditions and future challenges.>
    Peryouficated could look like this one.
    <2) You receive a clear assessment of your starting position and a selection from meaningful options, in order to make your business fit for the pending tasks. You learn effective procedures, fulfill reliably the legal requirements and you sustainably successful.>
    With whom would you rather collaborate?

Even if the examples seem to be both and simple at first sight, sooner or later you recognize the difference. In the real world further aspects are added, like e.g. the appropriate word choice, the personal behavior, and the dressing. In any case it is better to focus on the view of the customers, than on yourself.

Bottom line: Regardless of your field of expertise it is favorable to consider and formulate the tasks from the perspective of the customer. This will makes it easier for the customer to understand and valuate an offer and to decide for it. PERYOU the customer gets what he wants.